Struct Finance Rolls Out Customizable Interest Rate Product for DeFi Users

The product will allow for traders to invest with both low and high risk appetites.

AccessTimeIconJun 21, 2023 at 3:00 p.m. UTC

Struct Finance, a decentralized finance (DeFi) platform that allows investors to trade tailored structured financial products linked to crypto, has released its interest rate vault and “tranching” mechanism.

The firm will include different tokens, tokenized derivatives, vaults, pools in a permissionless manner to craft new products tailored to the investor’s risk appetite, according to a press release.

“The new interest rate products allow anyone to split and repackage the risk of any yield-bearing DeFi assets in different parts to fit their risk profile through an innovative process called ‘tranching’,” said the press release.

The products are a single vault split into two portions, or tranches that have different returns. Firstly, a fixed-return tranche for conservative investors looking for consistent returns. Secondly, a variable-return for investors with higher risk appetite.

The yield from the underlying asset flows into the fixed tranche to ensure predictable returns, while the remainder is allocated to the variable tranche, which gets enhanced exposure to the underlying yield-bearing asset, said the press release.

“The lack of fixed-yield returns in crypto has been a deterrent to entry of both larger institutions and smaller players with more conservative risk appetites,” said the press release. “Considering the Struct Factory allows permissionless tranching of liquidity pools, fixed rate returns may become commonplace enough to tame the wild and volatile returns of Web3.”

Struct Finance is currently available on layer-1 protocol Avalanche.

Edited by Aoyon Ashraf.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Lyllah Ledesma

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.

Read more about